Gil Kelley, Vancouver's chief city planner, says the character home review has proven more controversial than anticipated. (Chris Corday/CBC)

​(CBC NEWS) The City of Vancouver has backpedalled on an idea it said would help preserve character homes by providing an incentive for preservation and discouraging demolition.

On Tuesday, city planner Gil Kelley told council that staff would not be "carrying forward" the proposed concept of "downzoning," which stemmed from Vancouver's Character Home Zoning Review.

The idea would have given homeowners incentive to preserve character homes — defined as a house built before 1940 with recognized historical features — by "punishing" those who opt for the wrecking ball.

Any new replacement home would have had to be smaller than what was previously allowed, among other things.​At this week's city council meeting, Kelley said many residents strongly disapproved of downzoning over fears it would unnecessarily restrict housing supply and affect land values for single family homes.

There are other groups in the city that have long pressed the municipal government to protect character homes, and demolition of older homes has been a recurring topic in the debate around Vancouver's housing market.Caroline Adderson, creator of the Vancouver Vanishes website, said the allowance of teardowns is "about redevelopment catering to the luxury market."

Of the 1,000 homes that are demolished in the city every year, around six per cent were built before 1940.

The city's review, sparked in part by resident concerns over the loss of older buildings, began last November.